Your Credit Score and Financing Access
Your credit score is a determining factor in your access to mortgage financing and the most competitive rates.
Thresholds by lender type
- 720+: Best market rates at all lenders
- 680-719: Good rates at major banks and Desjardins
- 620-679: Higher rates, alternative lenders (B-lenders)
- 550-619: Alternative lenders only, significantly higher rates
- Under 550: Private lenders (7-12%), temporary solution
Action plan if your score is insufficient
- Get your reports: Order your free Equifax and TransUnion reports.
- Correct errors: Dispute any incorrect information. Correction timeline: 30-90 days.
- Reduce balances: Pay credit cards below 30% of the limit.
- Avoid new applications: Each new application temporarily reduces your score.
- Patience and consistency: 6 months of good behavior significantly improves your score.
The Quebec Real Estate Market for Buyers
Homeownership in Quebec fits within a specific regulatory and fiscal framework. OSFI's B-20 stress test reduces borrowing capacity by 15 to 20% compared to the theoretical amount at the contractual rate. Mortgage loan insurance (CMHC, Sagen, or Canada Guaranty) is mandatory for any down payment below 20%, adding 2.8 to 4% to the borrowed amount. Transfer duties (welcome tax) in Quebec follow a progressive scale from 0.5% to 2.5% depending on price brackets. The Home Buyers' Plan (HBP) allows withdrawing up to $60,000 per person from your RRSP tax-free, and the First Home Savings Account (FHSA) offers up to $40,000 in deductible contributions with tax-free withdrawals for purchase.
Your Purchase Action Plan
Purchasing a property in Quebec is a project that requires methodical preparation. Start by establishing a realistic budget that goes beyond the bank calculator. Include all costs: down payment, closing costs (3-5% of price), transfer duties, notary ($1,000-$2,500), inspection ($500-$800), and tax adjustments. Plan an emergency reserve of 3 to 6 months of payments. Consult an AMF-certified broker for mortgage pre-approval and a 120-day rate hold. Work with an OACIQ-certified real estate broker for the search and negotiation. Draft a purchase offer conditional on inspection and financing to protect your interests.
Protecting Your Real Estate Investment
Buying a property is the most important financial project of your life. In Quebec, you benefit from a solid regulatory framework with the AMF overseeing mortgage brokers, the OACIQ overseeing real estate brokers, and the notarial process securing the transaction. An AMF-certified mortgage broker accompanies you free of charge from start to finish, from pre-approval to disbursement. They compare offers from multiple lenders, negotiate the best conditions, and ensure you understand every aspect of your mortgage commitment. Never make the most important financial decision of your life without professional consultation.